Southampton are leading the race to sign talented Birmingham winger Demarai Gray in January.

Former Liverpool and Everton target Martin Montoya has been told he can leave Inter Milan next month – he is currently on loan at the Serie A club from Barcelona but has made only two appearances.

Manchester City will not pass up the chance to bring in Pep Guardiola as their new manager even though they will have to pay up the 18 months remaining on Manuel Pellegrini’s contract.

Swansea are continuing talks with former Argentina and Chile coach Marcelo Bielsa. The discussions over possibly succeeding sacked Garry Monk at the Swans’ had stalled over the Argentinian’s financial demands.

Tottenham will have to put any move for Marseille hitman Michy Batshuayi on hold until next summer at the earliest as the player has no intention of moving before Euro 2016.

Oscar Garcia has emerged as a candidate to take over as Reading manager. Garcia left Watford after 27 days in September 2014 because of a health scare, but he is fully recovered.

Kevin Grosskreutz’s agent is set for talks with Galatasaray top brass over a Liverpool move for the German defender.

Arsenal are watching young Polish goalkeeper Bartlomej Dragowski, who has represented Poland at U21 level.

Peter Crouch is set to bid farewell to Stoke City in January over his increased frustration at a lack of playing time.

Southampton boss Ronald Koeman will make another bid to sign Feyenoord midfielder Tonny Vilhena next month.

Rémi Garde has flown to New York for talks with Aston Villa chairman Randy Lerner as the club plot their transfer strategy for January. Garde met with Lerner in the United States on Monday and has been promised funds to strengthen his squad.

Chelsea are considering offering Guus Hiddink a second short-term stint as Chelsea manager should owner Roman A